In Kerala, the contract of 134 Kudumbashree employees has ended

As many as 134 contract employees of the Deendayal Antyodaya Yojana-National Urban Livelihoods Mission (DAY-NULM) Kudumbashree Mission are staring at an uncertain future after the Kerala government decided not to renew their contract which expired on June 30. Among the 134 employees, 118 are women.

Implementation of DAY-NULM began in the state in May 2015. Kudumbashree is the nodal agency for the project aimed at reducing poverty and vulnerability of poor urban households.

The Union government, in a communication to states on the transition from DAY-NULM (which ended in September 2024) to the new Deendayal Jan Aajeevika Yojana-Shehari (DJAY-S) regime, said that the existing administrative structure in the states could be maintained to ensure continuity of support to beneficiaries and transition to the new mission. DJAY-S pilot project has also been implemented in Thiruvananthapuram and Kochi till 31 December 2025.

compensation

C clarified that expenses incurred during the transition period pending the approval of the new mission may be proposed for compensation. In view of insufficient funds under DAY-NULM, the labor costs from October 2025 have been met as an interim measure from the Kudumbashree Convergence Program account. This amount was returned in May 2026 from unspent funds and DJAY-S wages paid. As ₹3.57 crore was still available under the Swarna Jayanti Shahari Rozgar Yojana (SJSRY) in the state, Kudumbashree was directed on June 24 to use its central share to meet the salary expenditure of the employees from June to August this year. A day later, this authorization was revised to pay wages for June only.

Although the contract of employees appointed at Kudumbashree on annual contracts expired in March, they were extended till the end of June.

On June 30, an order was issued extending their contract to September 30. However, the contract under NULM/DJAY-S was not renewed.

Training and coordination of meetings to promote the Kudumbashree three-tier structure, classification of neighborhood groups, business start-up support, implementation of special Kudumbashree campaigns, coordination of AMRUT Mitra and support of Swachh Bharat Mission Urban in 130 Community Development Societies in 93 urban local bodies in the state are the responsibilities of these staff members.

“Meeting with Ministers”

NULM staff said they met with United Democratic Front (UDF) ministers to push for at least an extension so they can have a dignified exit instead of being fired suddenly.

At least 50 of them are the only earning members of their families. Nine of them are over 50 years old. Finding another job at this stage would be very difficult. Sixty-four of them are in the 30-40 age group and 58 in the 40-50 age group. Most of the 134 whose contracts were terminated are said to be drawing only ₹15,000 a month.

Moreover, those who were released belong to all political orientations, not just the left, they said.

Kudumbashree staff fear that this is just the beginning of contract terminations; other contract workers would soon meet the same fate.

Published – 02 Jul 2026 15:55 IST